Reference is made to the announcements dated 3 July and 7 July 2020 on the receipt of a Winding-up Petition (“Petition”) by Boustead Naval Shipyard Sdn Bhd (“BNS”), a major associated company.

The Board of Directors of Boustead Heavy Industries Corporation Berhad (“BHIC” or the “Company”) wishes to announce that BNS has applied to the High Court of Kuala Lumpur pursuant to Sections 366 and 368 of the Companies Act 2016 (“Act”) for, among others, the following orders:

(a) An Order pursuant to Section 366(1) of the Act to summon meetings of the creditors of BNS or any class of them for the purpose of considering and if deemed appropriate, to approve with or without modification, a proposed scheme of arrangement and compromise between BNS and its creditors; and

(b) A restraining order pursuant to Section 368 of the Act whereby, among others, all proceedings and/or further proceedings and/or future proceedings in any action or proceedings against BNS and/or its assets, including but not limited to Court, winding up and arbitration proceedings as well as any intended or future proceedings (“Restraining Order”). The Restraining Order excludes the financial institution creditors of BNS.

On 13 October 2020, the High Court of Kuala Lumpur granted an ad interim Restraining Order until 30 October 2020 being the next court hearing date. 

The ad interim Restraining Order will not restrain or stay the continuation of the legal proceedings in Kuala Lumpur High Court Companies Petition No. WA-28NCC-490-06/2020 brought by MTU Services (Malaysia) Sdn Bhd and the Ipoh High Court Suit No. 22NCvC-193-08/2012 brought by Ingat Kawan Sdn Bhd.

The Board will make the relevant update announcement(s) in relation to the foregoing as and when there are material developments on the same.

This announcement is dated 13 October 2020.